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Penalizing the Victims While Protecting the Perps

Updated June 7, 2007 12:01 a.m. ET

I was greatly disappointed to read that the expected settlement between the SEC and Brocade Communications Systems Inc. regarding the backdating of stock options may pave the way for similar cases ("Backdating Fine May Set Model," Leading the News, May 31). The approach expected here would simply penalize the victims and protect the perpetrators in many options-backdating cases.

As the Journal has reported, options backdating appears to have been an all-too-common occurrence. Typically, selected executives would achieve...